LLANELY F.

DAYAO
BA3R
MR. SERGIO CLARIDA

II. ESSAY

1. What are the bases of pay differentials when employees decide to pay individuals doing the
same jobs with different rates of pay?
Answer: The four criteria most commonly cited as influencing pay differentials, were
“responsibility”, “knowledge, skills and abilities”, “performance” and “difficult or stressful work”

2. Compare and contrast individual incentive pay to a group incentives pay system,
Answer: Team incentives help to reward organizational performance, while individual
incentives focus on top performers who achieve individual goals. A combination of individual
and team-based reward schemes may be implemented. Individuals will still be sufficiently
compensated for their contributions in a mixed rewards scheme.

3. What are the major factors influencing pay? What sort of advice would you give to someone
whose goal is to earn a great deal of money?
Answer: The factors influencing wage and salary administration in an organization are:-
1. The Organization’s Ability to Pay and the Sustaining Strengths 2. Supply and Demand of
Labor and Levels of Skills 3. The Prevailing Market Rate Government Legislation on Wages 4.
The Cost of Living Inflation Rate 5. Living Wage Concept

4. Assume you are the head of the public relations office of GSIS that just gave its CEO a huge
bonus. Outline a plan to be [presented to the press justifying the bonus given to the CEO.
Answer: In recent years there have been any cases where the CEOs are being paid in far
excess of what an entry level employee would make and this has cause criticism in many cases
where even in circumstances where the performance of the company has been poor but the
senior management continues to receive high salary and bonus and this issue has also grabbed
a lot of media attention and shareholders have been cautious to invest in companies where
such activities are going on. If the GSIS performance has been good and a lot of is because of
the CEO action and plan so the bonus is justified. In order to justify this plan to the media, the
company should release a press statement, the press statement should consist of the key
contribution of the CEO during the year and key performance outcomes ratios like, net income,
increase in year on year basis and other such financial statement ratios. The company should
also mention the future plan of the company which is being led by the CEO and how it is going
to benefit the shareholders in the long-term. In the press briefing the company should mention
about the bonus structure of the CEO and explanation that this pay structure for the CEO has
been approved by the board of directors. A detailed press statement should be issued by the
company along with the approval of the board of directors because most shareholders agree
that in order to retain high performing individual you have to provide and attractive pay structure
and if the company is doing well then that pay structure should be justified.
5. State the different areas of consideration following the guide below.

Weakness of DR. Pancho

● He is demotivated with his salary.
● He has expectation

Opportunities
● Significant and justifiable salary increase based on his accomplishment, length of
● service and competencies

TReaths
● Chair’s jealousy that will lead to gossip and chaos in the organization.
● Biased and unjust decision of the Dean in terms of salary increase.
● Not following of the university’s policy due to personal interest and possible
● competition to arise.

6. Give your proposed solutions/alternatives courses of action or ACA (minimum of three) to

help Dean Lacap solve the problem raised by DR. Pancho. State also the advantages and
Disadvantages of each ACA.
Answer: Dean Lucap should evaluate the chairs based on the stated policy of the
organization.
Advantage
- Those who’s in authority who are exerting their effort for attaining the objective
will have more interest and they will be more encourage to make their works more
effective.
- Dean Lucap should make clear explanation to that on why he made that kind
of appraisal.

Advantage: Maybe Dr. Pancho will consider and accept it because he just new to his
position

Disadvantage
- Other chairs will get jealous because as stated, the dean always giving an
equal percentage increase.
- Dean Lucap Should present the criterias of evaluating each of the chairs or he
should present the result of individuals' accomplishments.

Advantage:
- It may be identified whose chair is actually excelling .
7. State your recommendations based on your ACA
Answer:
My opinion here is that Dean should evaluated the chairs fair without contrary to the official
university’s policy and Dr. Pancho should also coordinate early to Dean Lucap so that no more
appointment may happen. I think Dr. Pancho is right because as stated that he met the
standards of qualification, his performance also is success and he is personally active
compared to the performance of other chairs and this may considered as a discrimination but
Dr. Pancho should know also that he just new to his position as a chair because university’s
policy is also based on the length of services. In the other ways of this case is always
happening maybe Dr. Pancho and other member of that department who actually attaining the
good performance may discourage instead of they maybe more enhancing their abilities to
perform more effectively. I have also stated that Dean Lucap should have a clear explanation for
that case so that if ever Dr. Pancho may understand it. in that way Dr. Pancho will continuously
doing his job well.

8. Provide the conclusions/detailed action plan to implement your recommendations using the
guide below.
Answer:
I think also if Dean Lucap will present the records of accomplishment each may
realize how their performance is, and this may let them force to work hard more for more
increase of their percentage of salary. But the case is Dr. Lucap always giving equal of
percentage, the question is will they know their abilities if they are measured without
referring to the stated policy? I think this will be reported to the HR management.